NMG: Nickel Mountain Group activities focused on moving company forwards

Nickel Mountain Group AB (publ) (STO: NMG) is pleased to provide the
following update of on-going activities of the company in recent months.

Highlights:

· An updated Pre-feasibility Study plan for the Rönnbäcken Project has
been completed by SRK Consulting.

· The final share capital reduction has been registered.

· Work is proceeding on the plan for separation of the Diamond business
segment.

· A court process against previous board members is being prepared by
Company solicitors. · The Board and management are evaluating various
financing options.

“The Board and management of Nickel Mountain Group have undertaken a
number of initiatives aimed at establishing a stable footing for the
company, so that it can focus on steady development of its key asset the
Rönnbäcken Nickel Project. SRK has provided us with a framework for
moving forwards with the Pre-feasibility Study and has incorporated
flexibility into the plan to allow adjustability of the work program,
according to fund availability. We have a number of processes currently
underway this year including restructuring, directed at placing the
company on a stronger financial base. The Board of Directors is taking
measures aimed at enabling a positive future direction for this
company,” commented Torbjörn Ranta, Managing Director.

Nickel Mountain Group (NMG) was presented with a detailed plan for
proceeding with a Pre-feasibility Study (PFS). The international mining
consultancy SRK Consulting (Sweden) AB (SRK) reviewed previous related
work conducted by NMG, and evaluated the remaining project tasks
required to complete a full PFS. PFS work was already initiated early in
2014, including a program of re-logging of 29,000 meters of drill core,
and additional flotation trials aimed at achieving higher recovery
factors and/or lower operating costs. Environmental consultants Golder
Associates were engaged to conduct long-term testing of waste rock and
tailings from the Rönnbäcken Nickel Project. Each of these tasks
represents an important milestone in a PFS, and the results will be
published when received later in the year.

SRK estimates remaining PFS activities to cost Swedish kronor 62 million
(MSEK) including contingencies, which is lower than earlier estimates,
primarily due to a need for less in-fill drilling. Given stable
financing, SRK expects completion of the PFS to require 18 months.

Share capital reduction finally registered

The Extraordinary Shareholders’ Meeting (EGM) on November 22, 2013
elected to lower the share capital by reducing par value per share from
Swedish Kronor (SEK) 2.50 to SEK 0.50. The share capital reduction was
registered by the Swedish Companies Registrar (“Bolagsverket”),
following expiry of the notice period at the end of March 2014. The
share capital of NMG now amounts to SEK 10,613,860.50.

Ongoing plan for separating the Diamonds business segment

The Board of NMG has decided on a plan to finally separate the Diamonds
business segment from the rest of the group. Ahead of the separation and
as previously announced, NMG needs to conduct a share issue to the Board
members Svein Breivik and Ole Weiss, Deputy Board member Erlend Dunér
Henriksen and the largest owner Altro Finans AB, in connection with loan
repayments and conversion of receivables. Such a share issue requires an
approved prospectus and the special approval of an EGM, which NMG will
shortly call for. The share issue will be conducted on the same
conditions as the share issue conducted in late January 2014.

Preparations for conducting court process

NMG is pursuing all measures to recover a 50 MSEK receivable on Alluvia
Mining Ltd. Swedish regulators have invalidated the acquisition of Ghana
Gold AB from Alluvia Mining. Moreover, company solicitors have been
engaged to prepare a civil court process against those previous board
members of NMG responsible for damages arising from the invalidated
transaction. NMG’s claims will be submitted to the Stockholm District
Court in the spring, barring any new information coming to light. As
this legal process may be drawn-out, NMG has reclassified the claim on
Alluvia Mining from a current asset to a financial fixed asset in its
2013 year-end accounts. The value of the claim has, for reasons of
prudence, been impaired to 30 MSEK, as informed in the most recent
interim report.

External financing options evaluated

At the same time as it is pursuing its claim on Alluvia Mining, the
Board of Directors and management of NMG are actively investigating
opportunities for external financing to cover working capital
requirements during the second half of 2014. The market will be updated,
once specific options have been selected.

Norwegian translation can be obtained from the company by request.

For and on behalf of the Board of Directors of Nickel Mountain Group AB:

Torbjörn Ranta

Managing Director

Cautionary Statement: Statements and assumptions made in this document
with respect to Nickel Mountain Group AB’s (“NMG”) current plans,
estimates, strategies and beliefs, and other statements that are not
historical facts, are forward-looking statements about the future
performance of NMG. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks",
"expects", "anticipates", "estimates", "believes", "projects", "plans",
strategy", "forecast" and similar expressions. These statements reflect
management's expectations and assumptions in light of currently
available information. They are subject to a number of risks and
uncertainties, including, but not limited to, (i) changes in the
economic, regulatory and political environments in the countries where
NMG operates; (ii) changes relating to the geological information
available in respect of the various projects undertaken; (iii) NMG’s
continued ability to secure enough financing to carry on its operations
as a going concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards nickel. In
the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could
differ materially from those presented and forecast in this document.
NMG assumes no unconditional obligation to immediately update any such
statements and/or forecasts.